On February 22 we mentioned that the Biotech HOLDRs ETF was trading within a descending channel and that it would be interesting to see if it could head higher. As you can see from the chart below, the bulls were able to push BBH above the trendline today, which is now being used by traders to confirm buying opportunities found in other biotech stocks. For example, as you can see from the chart of TEVA (lower chart), it has also broken above the upper resistance of a descending trendline and now looks like it will go higher.

We've also added the MACD to the chart of TEVA, which has recently crossed above its signal line. This bullish crossover will also be used by the bulls as confirmation of further upward momentum

BBH_022706.jpg
TEVA_022706.jpg

You May Also Like

Related Analysis
  1. Trading Strategies

    Three Types Of Profit Protection Stops

  2. Fundamental Analysis

    Trading With Stage Analysis

  3. Chart Advisor

    3 Ways To Trade The Greece Default

  4. Chart Advisor

    Oil Fails To Break Above Key Resistance

  5. Active Trading

    Top Natural Gas Stocks Worth Considering

Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!